The world’s richest man, Elon Musk, and Tesla, where he serves as CEO, are still the targets of multiple lawsuits despite being compelled by a lengthy legal struggle on Thursday to purchase Twitter.
Suit against Twitter
Investors in Twitter sued Musk in May in a federal court in San Francisco, claiming he had manipulated the price of the company’s stock by concealing his acquisition of Twitter shares in March. Additionally, it has been stated that the Securities and Exchange Commission is looking into the timeliness of Musk’s statements.
The lawsuit is allegedly banned by federal securities law, according to Musk’s attorneys, who have requested the court to dismiss the case.
Suit Against Tesla for $55 Billion
A Tesla shareholder is asking a judge to rule that Musk’s compensation package from Tesla, which is thought to be worth $55 billion (approximately Rs. 4,52,600 crore), benefits Musk unfairly. The Court of Chancery of Delaware will hear the matter on November 14. Tesla claims that the pay has benefited investors and aligns Musk’s incentives with those of the shareholders.
Employment Conflicts
Several charges of workplace harassment and discrimination are being fought by Tesla and Musk, including one brought by the California Department of Fair Employment and Housing (DFEH).
Before a new trial was mandated, a jury in 2021 awarded a Black elevator operator who worked at Tesla’s Fremont, California, factory $137 million (approximately Rs. 1,130 crores) in damages. Separately, a Tesla shareholder filed a lawsuit against the business, claiming it has not appropriately addressed workplace harassment and discrimination.
In response to employee complaints, Tesla has stated that it does not tolerate discrimination.
Suits Resulting from Musk’s Tweets
Tesla’s shares rose substantially after Musk announced in an August 2018 tweet that he had “financing secured” to take the company private. The tweet gave rise to numerous lawsuits.
In response to a lawsuit brought by the US Securities and Exchange Commission in 2018, Musk resigned as chairman of Tesla, paid fines, and had certain of his tweets reviewed by counsel before going public.
Tesla shareholders have filed a lawsuit in Delaware to impose more controls on Musk’s tweets concerning the business. The 2018 tweet was ruled to be erroneous and careless by a US District Court in San Francisco, which is investigating claims that Musk raised Tesla stock by making misleading representations.
In November, JPMorgan Chase filed a lawsuit against Tesla for an additional $162.2 million (approximately Rs. 1,330 crores), claiming that the 2018 tweet prompted it to revalue Tesla stock warrants. Tesla argued that the bank was seeking a “windfall” and that the warrants should have been canceled rather than repriced, claiming that Musk’s tweet constituted a personal statement. Tesla countersued the bank.
Analyses of the Tesla Driver Assistance
According to sources cited by Reuters, Tesla has reported 273 vehicle crashes since July 2021 that involved advanced driver assistance systems. This has sparked probes, including a US criminal investigation into claims that the cars can drive themselves.
Tesla has stated that Full-Self Driving also allows cars to heed traffic signals and make lane changes, while Autopilot “enables your car to steer, accelerate and brake autonomously inside its lane.”
SolarCity Legal Battles
Investors in Tesla are appealing a Delaware judge’s April decision that found Musk did not unfairly benefit himself when he led the firm to acquire SolarCity in 2016, where he served as chairman and the largest shareholder.
The investors had requested damages in excess of $10 billion, or around Rs. 82,290 crores.
In response to a whistleblower allegation that Tesla had not properly informed shareholders and the general public of the fire hazards associated with its solar panel systems, the SEC launched an inquiry in December.
